XDAO 2.0: Exploring Flux’s Next Generation of Governance

Flux Official
4 min readDec 15, 2022


Decentralized Autonomous Organizations (DAOs) redefine the conventional management hierarchy. DAOs Offer a public, decentralized, and distributed decision-making process — it puts the power in the hands of the People. Community empowerment was the very purpose of Flux’s original XDAO, launched in 2021, and now Flux is getting ready to hand even more power to the community with Flux XDAO v2.

At the core of Flux is the ideal of profound decentralization. It is the very reason Flux exists, to decentralize the Internet. As Flux is developing, the Flux Foundation stays true to this ideal by building decentralized solutions whenever possible. The Flux XDAO decentralized governance model has been developed to ensure that the community will play a highly pivotal role in the ecosystem and decentralize power within the Flux Network. The current iteration of the Flux XDAO was launched in 2021. It was an important milestone for Flux, but it was only the first basic version of the Flux governance model. Many improvements are coming to XDAO in the next iteration, XDAO v2.

The Flux Decentralized Governance System

In the current XDAO, anyone can submit different proposals for innovations, new ideas, or changes in the Flux ecosystem. The system is transparent and can be accessed on the Flux dashboard anytime. Some critical decisions for Flux have been made in the current system, such as allocating foundation funds for community-led marketing and rules on parallel asset claims for exchanges and mining pools.

A proposal has to garner a majority vote to be approved, provided more than 30% of the DAO submit their votes. Voting is conducted over a seven-day time frame, the progress of which can be publicly tracked on the XDAO dashboard.

In the current XDAO, only node operators are allocated voting power depending on their number of nodes and node tiers. This is a critical limitation as the Flux community consists of more than node operators; we also have Flux miners and holders who are all valued members of the Flux ecosystem. To strengthen the Flux decentralized governance model, voting power needs to be accessible to as many members of the Flux ecosystem as possible. Empowering the entire community will make it more invested in the ecosystem and keener on making sound decisions for the good of the ecosystem. Community empowerment in synergy with the Flux economic and incentivization model will create a very fertile environment for community involvement and innovation, thus helping Flux create the needed momentum for building Web3.

IN XDAO v2.0, Flux will be mitigating the limitations of the current governance system with a few changes and upgrades; here are some of the highlights:

  • A possible governance token ($XDAO) will be issued with no physical value, allowing more people to vote on initiatives by proving ownership of the token and signing with a ZelID.
  • Anyone holding $FLUX (on any chain) will receive these governance tokens in a 1:1 relation to their Flux holdings. This will enable miners and regular Flux holders to participate in voting on the XDAO.
  • Titan stakeholders will also participate; they can claim the token as regular $FLUX holders.
  • The speed of the votes and timeframes will be adjusted to allow quick and timely changes to the Flux ecosystem. New proposals will be posted to the FluxOS website and the upcoming FluxOS platform.
  • The choice of future Parallel Assets will now be decided through voting in the XDAO (the core team will submit proposals).
  • The core team will no longer be the point of contact for consensus and development changes; they will submit proposals to the XDAO like anyone else, making Flux a truly 100% decentralized platform. Normal operations will continue. However, significant items will need to be taken to the XDAO for community input and voting.
  • There will be a vote power cap to balance power between major Flux holders (whales) and smaller holders. These terms will be detailed before release.

XDAO 2.0 is a way for all community members to support Flux by actively participating in governing the ecosystem. Delegating resources towards powering the Flux infrastructure. At the same time, community members are encouraged to stay and grow with Flux by becoming Node operators, miners, Titan stakeholders, or simply by holding on to their Flux.

Wisdom of the Crowd

Transparency and empowerment are critical components of the blockchain and Web3 ideology. Therefore, XDAO v2 Flux will significantly reduce moral hazards and conflicts of interest in Flux’s decision-making by giving more power to the entire Flux community.

Flux believes in ‘community wisdom,’ our community has been instrumental to the ecosystem’s growth thus far. We hope the community is ready to pick up the mantle and become the decision-makers we need to build the future decentralized Internet. Your Internet, Your choice! Over the next quarter, we will be rolling out the next version for community approval.

To get more information about XDAO 2.0 or the Flux ecosystem, join our Discord and check out our official website.

Flux is also on Twitter. Click here to learn more about FluxNodes. To stake on Titan nodes, check out this article.

Flux is redefining the future of the decentralized internet by bridging the tech barrier and allowing end users to interact more easily with the Web3 ecosystem. We are innovating to power the free web smarter, better, and at affordable prices. Check out DApps already running on Flux.